BusinessGeneral NewsJoe BidenPoliticsU.S. Department of the TreasuryWashington news Biden Approves Debt Ceiling Legislation Preventing Historic US Default by Gabriel Martinez June 3, 2023 written by Gabriel Martinez June 3, 2023 5 comments Bookmark 89 President Joe Biden authorized a critical debt ceiling legislation on Saturday, just two days before the looming deadline, thereby preventing an unprecedented default on the U.S. federal debt. The usually quiet resolution put an end to the prolonged fiscal drama that had stirred uncertainty in both local and global financial markets and compelled retirees and social welfare organizations to prepare for a potential inability of the nation to honor all its financial obligations. The President chose to sign the bill in private, bypassing a public ceremony with bipartisan representatives, reflecting the urgency of the situation. The Treasury Department had cautioned that the country would begin to run out of funds by Monday, a predicament that could have rattled both the U.S. and worldwide economies. The White House shared a photo of Biden signing the bill at the Resolute Desk. In a concise statement, the President expressed his gratitude to leaders from both parties for their collaboration, a harmonious tone contrasting the initial discord that marked the debt discussions. Despite the tensions that sometimes characterize our politics, Biden emphasized in a video message that we should view each other as fellow Americans, advocating for a decrease in verbal hostility and for working together towards progress, prosperity, and fulfilling the American promise for all. The impasse started with Republicans’ refusal to elevate the country’s borrowing limit without Democrats agreeing to reduce spending. This led to rigorous negotiations, primarily between the White House and House Speaker Kevin McCarthy, R-Calif., resulting in a final deal. The legislation, passed by the House on Wednesday and the Senate on Thursday, postpones the debt limit until 2025 and imposes spending restrictions. It sets budget targets for the next two years with the aim of maintaining fiscal stability during the heated political period. Raising the debt limit, now standing at $31.4 trillion, guarantees the government’s ability to borrow funds to pay for existing debts. After the passage of the legislation, Biden used the occasion to deliver his inaugural Oval Office address, praising the compromise and consensus found in the deal and acknowledging the averted economic crisis. Biden celebrated the achievements of his first term while running for re-election, highlighting his efforts to prevent Republican attempts to undermine his policy and achieve deeper spending cuts. His most comprehensive comments on the deal praised McCarthy and all congressional leaders for their responsible actions prioritizing the country over politics. The 99-page legislation, in addition to imposing spending limits, alters some policies. It includes new work requirements for older Americans on food aid, gives a go-ahead to an Appalachian natural gas pipeline despite some Democratic opposition, and modifies some environmental rules to facilitate infrastructure and energy projects. Despite some setbacks, the White House affirmed that IRS plans to intensify tax law enforcement for high earners and corporations would proceed. The bill also stipulates a 1% cut to spending programs if Congress fails to approve its annual spending bills, pressuring both parties to reach an agreement before the fiscal year ends in September. The legislation found more support among Democrats than Republicans, but its passage was critical to both parties. The Senate approved it with 63-36 votes, while in the House, the bill was passed with a 314-117 vote. Congressional Correspondent Lisa Mascaro contributed to this report. Table of Contents FAQ about Biden Debt Ceiling LegislationWhat did President Joe Biden do to prevent a potential U.S. default?Why did Biden sign the debt ceiling bill in private?What was the disagreement between Democrats and Republicans that led to prolonged negotiations?What does the debt ceiling legislation entail?How was the debt ceiling legislation passed?More about Biden Debt Ceiling Legislation FAQ about Biden Debt Ceiling Legislation What did President Joe Biden do to prevent a potential U.S. default? President Joe Biden signed a critical debt ceiling legislation, thereby preventing an unprecedented default on the U.S. federal debt. The bill was signed just two days before the deadline. Why did Biden sign the debt ceiling bill in private? The debt ceiling legislation was signed in private due to the urgency of the situation. A potential U.S. default was only two days away, and the private signing reflects the seriousness and immediacy of the matter. What was the disagreement between Democrats and Republicans that led to prolonged negotiations? The standoff began when Republicans refused to increase the country’s borrowing limit unless Democrats agreed to cut spending. This disagreement led to intense negotiations between the White House and House Speaker Kevin McCarthy. What does the debt ceiling legislation entail? The final agreement suspends the U.S. debt limit until 2025, after the next presidential election, and puts restrictions on government spending. It sets budget targets for the next two years in an attempt to ensure fiscal stability. How was the debt ceiling legislation passed? The legislation was passed with more support from Democrats than Republicans in both the House and Senate. However, votes from both parties were crucial for its passage. The Senate approved it with a 63-36 vote, and the House passed it with a 314-117 vote. More about Biden Debt Ceiling Legislation Understanding the U.S. Debt Ceiling How does the U.S. Debt Ceiling Impact the Economy? The Role of Bipartisanship in U.S. Politics Recent Updates on U.S. Federal Debt You Might Be Interested In Decades Later, Forced Sterilization of Indigenous Women Continues in Canada, Despite Halt in Other Wealthy Nations New Methane Emissions Regulation from the U.S. Targets Oil and Gas Industry to Address Global Warming Understanding the Gaza Health Ministry and its Methodology for Calculating War Casualties Greek Coast Guard Defends Actions as Over 500 Migrants Feared Dead in Shipwreck Congressional Leaders Express Desire to Prevent Shutdown, Yet House and Senate Drift Further Apart Suspect Apprehended in Long Island Serial Killings, Confidential Source Reveals bipartisan agreementBusinesseconomic stabilityGeneral NewsJoe BidenPoliticsU.S. Department of the TreasuryUS Debt CeilingWashington news Share 0 FacebookTwitterPinterestEmail Gabriel Martinez Follow Author Gabriel Martinez is a science and technology journalist who covers the latest news and developments in the world of science. He is passionate about exploring new frontiers in technology, from artificial intelligence to space exploration. previous post How the most ‘incompetent talk show host of all time’ keeps getting guests next post Haley says US forces ‘need to align’ with countries including Russia; campaign says she misspoke You may also like Bookmark A woman who burned Wyoming’s only full-service abortion... December 28, 2023 Bookmark Argument over Christmas gifts turns deadly as 14-year-old... December 28, 2023 Bookmark Danny Masterson sent to state prison to serve... December 28, 2023 Bookmark Hong Kong man jailed for 6 years after... December 28, 2023 Bookmark AP concludes at least hundreds died in floods... December 28, 2023 Bookmark Live updates | Israeli forces raid a West... December 28, 2023 5 comments Jake89 June 3, 2023 - 9:11 pm whoa, Biden just made it in time, good to know we aren’t defaulting on our debts. Yikes, what a ride! Reply MariaP June 3, 2023 - 9:11 pm kinda scary to think how close we got to a default! gotta wonder why it had to go down to the wire… Reply MrGreen June 3, 2023 - 9:11 pm Not a huge Biden fan, but gotta admit, this was much needed. no choice but to raise that debt ceiling, even if it’s uncomfy to think bout how much we owe… Reply TechSavy June 3, 2023 - 9:11 pm its crazy to think that the debt limit is at 31.4 trillion now. That’s just mind boggling! Reply SusanK June 3, 2023 - 9:11 pm This whole debt situation, just shows how messed up our politics can be sometimes. Wish it wasnt always a fight… can’t they just work together? Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Δ